Welcome to California, the most litigious state in our great nation!  No matter where you live, lawsuits relating to the workplace have been on the rise in recent years.  Of course, we all do all we can to make our employees happy, but things do happen regardless of the company's size.  A lawsuit is costly and can consume tons of time and energy.  If only there were something you could do to protect you and your company in case this happened...

Well, that's why I'm writing!  There is such an insurance policy that can protect your company in the case of a lawsuit.  It's called EPLI insurance, and it's necessary for doing business in today's world.  

EPLI covers businesses against claims by employees with allegations of rights violations.  If you have a smaller company, insurers may add this as an endorsement to your Businessowner's Policy.  Other insurers offer EPLI coverage as a standalone policy.  

EPLI protects from the following lawsuits:

·        Sexual harassment

·        Discrimination

·        Wrongful termination

·        Breach of employment contract

·        Negligent evaluation

·        Failure to employ or promote

·        Wrongful discipline

·        Deprivation of career opportunity

·        Wrongful infliction of emotional distress

·        Mismanagement of employee benefit plans

Cost depends on company size, type of business, number of employees, and risk factors.  Have you been sued lately?  That will make your policy more expensive or possibly make you ineligible.  This policy will reimburse you for the costs of defending a lawsuit in court.  They do not cover damages or fines determined by the court. 

The most important conversation around this issue is making sure you're stopping problems before they happen.  Make sure you have clear employee handbooks and corporate policies.  Be very detailed in your hiring practices.  Don't shy away from addressing potential harassment in the workplace.  And always keep accurate records of issues as they arise.  

I'm not your lawyer, but I am your insurance broker.  My main job is to save my clients money and stress.  And for me to help you do that, you need this.  Don't wait any longer to secure your EPLI policy! Contact us today for further questions on these policies.  We're here to help.

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